Adnoc strikes deals worth more than $13.7bn at conference
Abu Dhabi National Oil Company struck deals worth more than $13.7 billion during the energy industry’s biggest event this week.
The figure takes into account only planned investments and awards by the UAE’s main energy company, and does not include preliminary agreements by other companies.
The highlight of the Abu Dhabi International Petroleum Exhibition and Conference was the joint venture formed by Adnoc and Abu Dhabi National Energy Company, also known as Taqa, to invest in renewables.
The companies joined forces to create a global renewable energy and green hydrogen venture that will have a generating capacity of 30 gigawatts by 2030.
It will enable Adnoc to “capitalise on the many renewable energy and hydrogen opportunities, both locally and globally”, said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc.
He said the partnership had “future-proofed” Adnoc’s business model by “creating compelling business and commercial opportunities” on the path to net zero.
In another huge deal, Adnoc and Austrian chemicals producer Borealis signed a $6.2bn partnership agreement for the development of the fourth unit of a polyolefin manufacturing complex in Ruwais.
The Emirates plans to triple its petrochemical production capacity from 4.5 million tonnes – currently produced entirely by the Borouge plant in Ruwais – by 2025.
Adnoc also declared investments of up to $6bn to advance growth in drilling to support planned capacity increases.
On Thursday, it awarded contracts worth $1.46bn to expand the output of the Dalma gasfield, part of the world’s largest offshore sour gas concession.
The UAE’s National Petroleum Construction Company and a joint venture between Spain’s Tecnicas Reunidas and Target Engineering won the contracts.
Deals were signed to raise the UAE’s upstream capacity to five million barrels per day by 2030.
Abu Dhabi National Oil Company awarded two engineering, procurement and engineering contracts worth $1.46 billion to expand the output of the Dalma gasfield, which is part of the world’s largest offshore sour gas concession.
The UAE’s National Petroleum Construction Company and a joint venture between Spain’s Técnicas Reunidas and Target Engineering won the EPC contracts for the development of the Dalma field.
The first package awarded to NPCC is worth $514 million and covers the construction of four offshore wellhead towers, pipelines and infrastructure in Hair Dalma, Satah, and Bu Haseer fields.
The second package, worth $950m and awarded to the Técnicas Reunidas-Target Engineering JV, covers gas conditioning facilities on Arzanah island located 80 kilometres from Abu Dhabi.
“The award of the Dalma EPC contracts as well as ongoing artificial island construction and development drilling underscore the progress of the Ghasha mega-development,” said Adnoc upstream executive director Yaser Almazrouei.
“As we continue to execute this strategic project, we are ensuring it delivers substantial in-country value to drive economic growth and support the objectives of the UAE’s Principles of the 50.”
A cornerstone of the UAE’s jubilee celebrations is the Projects of the 50 – a series of initiatives to boost economic growth and prepare for a rapidly changing future. In September, the UAE set out the Principles of the 50 to lay out the country’s economic, political and developmental road map for the next five decades.
About 70 per cent of the value of the project award will flow back into the UAE’s economy, Adnoc said. After development work executed by the contractors, the Dalma field will have the capacity to produce around 340 million cubic feet per day of natural gas by 2025. The field is about 190km north-west of the UAE capital.
“Adnoc and its partners remain guided by our strategic production capacity objectives and sustainability ambitions. Together, we are responsibly progressing the Ghasha mega-development to maximise value as well as support the gas self-sufficiency goal of the UAE,” Mr Almazrouei, said. Adnoc also awarded a contract to Technip Energies for design work on the Ghasha mega-project. Technip Energies will look to accelerate carbon capture on the site and optimise costs, Adnoc said.
The first ouput from the Ghasha concession is expected to begin in 2025 and will be increased to 1.5 billion cubic feet per day before the end of the decade. Adnoc has built three artificial islands to support production.
The Ghasha ultra-sour gas concession comprises the Hail, Ghasha, Dalma, Nasr, Sarb, Bu Haseer, Shuweihat and Mubarraz offshore sour gasfields.
Adnoc maintains a majority stake, while Italy’s Eni, Germany’s Wintershall Dea, Austria’s OMV and Russia’s Lukoil hold the remaining shares.
Adnoc also awarded a contract to Technip Energies for design on the Ghasha mega-project